Corporate earnings remain front and center (BAC, GE, GOOG) with it being that time of the year and news from GS and BP add more flavor to the mix. If BP is successful this time around in capping the well, a tremendous amount of direct economic uncertainty can be more confidently quantified for everyone else down south and hopefully AL, MS, LA and FL can get some relief as the clean up progresses with now a finite amount of oil. On GS, all I will say is, can I find out who shorted that stock to me yesterday? The $ index is down for a 4th day to an 11 week low led by Euro strength. 3 mo Euribor is rising to the highest since Aug ’09 and hasn’t fallen since Apr 20th. As liquidity from the ECB continues lower, short rates are rising. Also there is likely bank hoarding of cash going on ahead of the stress test results next week. Spanish yields continue lower with its 2 yr spread to Bunds at an 8 week low and 10 yr spread at 3 week low.
